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Looks Like Residential Construction is Back on Track
Tuesday, October 20, 2020
Residential
construction resumed its upward trend after a brief pause in August. The U.S.
Census Bureau and Department of Housing and Urban Development reported that all
three measures of construction, permitting, housing starts, and unit completions,
increased in September. Permits
for privately owned residential construction were issued at a seasonally
adjusted annual rate of 1,553,000, up by 5.2 percent from the 1,476,000-unit annual
rate (revised from 1,416,000) in August. The increase from the previous
September's rate of 1,437,000 units was 8.1 percent. Analysts
had expected permits to recover from their slight (0.9 percent) downturn in August
but those polled by Econoday had a consensus of only 1,451,000 units. Even the
high end of their 1,375,000 to 1,500,000 forecast range was well below the
actual number. Single-family
permits rose 7.8 percent to an annual rate of 1,119,000 units and was 24.3
percent higher than a year earlier. The August estimate was revised slightly higher,
from 1,036,000 to 1,038,000. Permits for construction in buildings with five or
more units rose 1.0 percent to 390,000, however this is 22.2 percent below the
pace a year earlier.
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